Features: Successful Retail Strategies

Mar2008

LUX LIFE

By courting the true luxury customer, Ilori turns sunwear into a special treasure

Walking into an Ilori store is truly a
feast for all the senses. The faint
pleasant aroma of fig tickles the
nostrils. Soft music plays in the background.
The eyes fall on luxury sunwear beautifully
and sleekly displayed much like fine jewelry
or precious art work. However, unlike jewelry
or art, the glasses are presented so that they
are easily accessible, allowing them to be
touched and tried on the face. Finally, to
complete this sensory seduction, you are
given a custom French chocolate that melts
deliciously in the mouth.

Welcome to sunwear transformed into a
true luxury experience… a special treasure,
you might even say. Well, actually, you would
say. The word “Ilori” comes from the West
African language of Yoruba and means just
that: special treasure. The brainchild of
Luxottica Group, the Ilori concept was born
out of a void in the retail market—sunwear
as a true luxury item. “We saw growth in
the premium accessory category,” says
Michael Hansen, VP/general manager for
Ilori. “In fact, the fastest growing segment of
the category was luxury. But where were
the sunglasses? They were way behind
handbags and footwear, and other premium
accessories. We saw this as a significant
opportunity. The next explosion in premium
accessories will be in the sun category.”

The store concept, which took 24 months
to research and develop, is about catering
to the true luxury consumer. This is not
about Vera Wang for Kohl’s or Isaac
Mizrahi for Target. Decidedly reversing
on that sort of retail concept, is about
the consumer who will pay $8,000 for a
limited-edition handbag.

With that in mind, retail prices for
sunwear sold in Ilori climb from an opening
price point of about $200 up to the $4,000 to
$5,000 range. “There is no end to what the
luxury consumer will pay if they believe
it’s special and true,” notes Hansen. “We
outperformed our expectations. Our AUR
(average unit retail) is $800. The actual
transaction is even greater than that. We
are pleasantly surprised.”

Product uniqueness is pivotal in the
luxury category. “A segment of our
assortment is dedicated to niche collections
and up-and-coming designers,” says
Hansen. “They may not be as well known
to the typical consumer but they will
appreciate the design elements whether it’s
materials not typically used or just very
avant garde styling. We also want to have
very unique product such as a limited-edition
Sama frame retailing for $2,100 or a
more iconic brand such as Ray-Ban or Persol
in colors not normally available in
North America. We bring in best-selling
styles from around world. Our customers
travel frequently and internationally.
They understand the cultures they see
around the world.”

That unique product has helped Ilori
succeed in getting their consumers to
view sunglasses as a wardrobe item. “If a
customer is preparing for a special event
she is going to buy an appropriate
wardrobe—matching shoes, jewelry and
handbag,” explains Hansen. “But they stop
there and never ever think of the sunglasses.
We’re creating a paradigm shift. We treat
sunglasses as a true premium fashion
accessory. In all of our stores consumers
are coming back, even those that have
only been open two months. We have
consumers coming back five to 10 times to
buy different sunglasses. We are selling
multiples at a greater frequency.”

The first Ilori store opened in New York’s
fashionable Soho section on September 14,
2007. There are currently five others
including Rodeo Drive in Los Angeles and
Ala Moana in Hawaii. Overall plans are to
open up 100 to 150 in North America.
“The design of the store is created out of
culture and inspired from art,” says
Hansen. “All the stores are different. The
store in Rodeo Drive does not look like the
store in Soho. Overall it’s about treating
sunglasses as a work of art and putting
them into an environment that produces
that type of service.”

Service is indeed a key ingredient for Ilori
and part of that is employing a staff—
referred to as style consultants—who are
not mere sales clerks. “We’re looking
for multiple experiences from our
employees,” says Hansen. “We have
recruited people directly from the fashion
houses. These are people who have a
meaningful appreciation of as well as a
depth and breadth of brand knowledge.
They understand the expectations of the
luxury consumer. We also hire those who
come from the service industry, who have
worked for a Four Seasons type of hotel,
for example.”

The style consultants are given two weeks
of training prior to the store opening and
work with senior level employees. They are
schooled not just in product knowledge
but also brand heritage and trends.
Consultants keep clientele books and send
customers handwritten, personalized
thank-you cards as well as notes about
upcoming events or new products.

All of this brings sunwear to a level never
before encountered by consumers. “The
experience comes as quite a surprise,”
notes Hansen. “They are not expecting to
see sunglasses treated as a piece of art.
They are not expecting to see associates
dressed in a nice wardrobe, to be offered
refreshments or to receive a customized
chocolate from a French chocolatier. They
are wowed by the service.” In the end the
special treasure is not just the product, but
the customers themselves.